n NISM Certifications
X NISM Series X
Medium

An AIF distributor acts as the initial point of contact and must assess product suitability to ensure that the investment aligns with the investor’s risk profile and needs. This step is crucial in the fund selection process, but the final decision rests with the investor after due diligence. Distributors should focus on suitability assessment rather than aggressive marketing or guarantee assurances.

Practice question from NISM Series XIX A- Alternative Investments Funds (AIF) Distributors Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Correctly assess the product suitability as this is the first step in the process of fund selection

    Correct answer

  2. B

    Make sure of adequate third-party liability protection

  3. C

    Market the AIF very aggressively as he believes it to be very good

  4. D

    Employ good PR manager for marketing the fund

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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